Gillette Reports Results for the Fourth-Quarter and Full-Year 2000
BOSTON, Jan 26, 2001 (BUSINESS WIRE) -- The Gillette Company (NYSE:G) today
reported fourth-quarter and full-year 2000 results. All periods presented in the
financial statements reflect the reporting of the Stationery Products business
as a discontinued operation.
"The Company made good progress this year on several fronts, including
significant improvements in reducing working capital requirements and addressing
our underperforming product lines," said Edward F. DeGraan, president and chief
operating officer. "We look forward to further improvements this year based on
the strong fundamentals of our core categories, our broad-based new products
program and significant cost-cutting measures, such as the recently announced
restructuring program."
Results for the three months ended December 31, 2000, are before a restructuring
charge booked in the fourth quarter, which reduced profit from operations by
$572 million, net income by $430 million and diluted net income per common share
by 41 cents.
Sales for the quarter were $2.82 billion, an increase of 1% from $2.80 billion
in the fourth quarter of 1999. Excluding the adverse effects of exchange and the
divestiture of the White Rain brand, sales would have climbed 8%. Profit from
operations in the fourth quarter was $568 million, virtually unchanged from that
of a year earlier. Net income from continuing operations before the
restructuring charge rose 3% to $345 million, compared with the $335 million of
the prior year. Diluted net income per common share of 33 cents was 3% above the
32 cents in the fourth quarter of 1999.
Results for the total year are for continuing operations and are before the
restructuring charge. The effect of this charge is to lower full-year profit
from operations by $572 million, net income by $430 million and diluted net
income per common share by 41 cents. Net income is further reduced by $429
million, and diluted net income per common share by 40 cents, due to the effect
of the Stationery Products divestiture. The total impact on diluted net income
per common share is 81 cents.
Sales for the year 2000 were $9.30 billion, a gain of 2% from $9.15 billion in
1999. Excluding the adverse effects of exchange and the divestiture of the White
Rain brand, sales would have increased 8%. Profit from operations, at $2.08
billion, showed little change from the prior year. Net income from continuing
operations of $1.25 billion also matched that of the previous year. Diluted net
income per common share rose 4% to $1.18, compared with $1.13 the year before.
After the adjustment of 81 cents to reflect the impact of the restructuring
charge and the discontinued operation, diluted net income per common share was
37 cents.
Results by business segment follow.
- Blade and Razor sales in the fourth quarter climbed 10%, and
profits 29%, compared with those of the year before. For the
total year, sales grew 8% and profits 11%.
- For the fourth quarter, Duracell sales declined 6% and profits
31%. Sales and profits for the year fell 5% and 28%,
respectively, from the levels of the prior year.
- Braun sales in the quarter were virtually unchanged, but would
have advanced 9% without the negative effect of exchange.
Profits increased substantially. Braun sales for the total
year were up 5%, but would have risen 12%, excluding exchange.
Profits moved significantly higher.
- Oral-B sales climbed 13%, and profits 10%, in the fourth
quarter. Full-year sales advanced 10%, while profits declined
3%.
- Sales of Toiletries in the fourth quarter decreased 11%, while
profits were substantially lower. Excluding the divested White
Rain brand, sales would have matched those of the prior year's
fourth quarter. For the full year, sales were down 8%, but
would have shown little change from 1999 without the White
Rain brand. Full-year profits decreased 11%, compared with the
year before.
For both the fourth quarter and the year, net interest expense was higher, while
exchange losses and the effective tax rate were lower, compared with 1999.
The Company continued to make good progress against its target of reducing
working capital by $1 billion by the end of 2002. At December 31, 2000, working
capital was reduced by $515 million compared with September 1999, a saving that
excludes the reduction achieved in Stationery Products working capital prior to
the divestiture of the business.
This release contains forward-looking statements about the Company's
performance. These statements are based on management's estimates, assumptions
and projections as of today and are not guarantees of future performance. The
Company assumes no obligation to update these statements. Actual results may
differ materially from results expressed or implied in these statements as the
result of risks, uncertainties and other factors including, but not limited to:
(a) variations in sales volume, (b) finalizing quarterly results, (c) the
acceptance of new products by the trade and consumers, (d) economic conditions
and exchange rates, (e) actions by competitors, (f) unanticipated legal and
administrative proceedings, (g) integration due to acquisitions and
restructuring programs and (h) the impact of unusual items. Please refer to the
Cautionary Statements contained in the Company's 10-K and 10-Q filings for a
more detailed explanation of the inherent limitations in such forward-looking
statements.
The unaudited consolidated income account follows.
(Millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
2000 1999 2000 1999
Net Sales $2,818 $2,799 $9,295 $9,154
Profit from
Operations(a) $ (4) $ 570 $1,512 $2,087
Income from
Continuing
Operations bef.
Income Taxes(a) $ (69) $ 512 $1,288 $1,912
Income Taxes(a) $ 16 $ 177 $ 467 $ 664
Income From
Continuing
Operations(a) $ (85) $ 335 $ 821 $1,248
Income (Loss) from
Discontinued Operations
(Net of Taxes) $ 0 $ 4 $ (429) $ 12
Net Income(a) $ (85) $ 339 $ 392 $1,260
Net Income (Loss) per
Common Share:
- Basic:
Continuing
Operations(a) $(0.08) $ 0.32 $ 0.78 $ 1.14
Discontinued
Operations $ 0.00 $ 0.00 $(0.41) $ 0.01
Net Income(a) $(0.08) $ 0.32 $ 0.37 $ 1.15
- Assuming Full Dilution:
Continuing
Operations(a) $(0.08) $ 0.32 $ 0.77 $ 1.13
Discontinued
Operations $ 0.00 $ 0.00 $(0.40) $ 0.01
Net Income(a) $(0.08) $ 0.32 $ 0.37 $ 1.14
Average Number of
Common Shares Outstanding:
- Basic 1,053 1,068 1,054 1,089
- Assuming
Full Dilution 1,059 1,087 1,063 1,111
(a) 2000 fourth-quarter and total year figures include charges for
restructuring costs, which reduced reported profit from
operations and income from continuing operations before income
taxes by $572 million, income taxes by $142 million, income
from continuing operations and net income by $430 million, net
income per share, basic, by $0.41 and assuming full dilution,
by $0.41.
The data reported above are based on unaudited statements of
income, but include all adjustments that the Company considers
necessary for a fair presentation of results for these periods.
The unaudited consolidated balance sheet follows.
(Millions)
Dec. 31, Dec. 31,
2000 1999
Cash and Investments $ 62 $ 80
Net Trade Accounts Receivable 2,128 2,208
Inventories 1,162 1,392
Other Current Assets 1,141 943
Net Assets of Discontinued Operations 189 1,174
Net Property, Plant and Equipment 3,550 3,467
Other Assets Including Goodwill
and Intangibles 2,164 2,522
Total Assets $ 10,396 $ 11,786
Current Liabilities $ 5,493 $ 4,180
Long-Term Debt 1,650 2,931
Other Non-Current Liabilities 1,258 1,256
Contingent Value Put Options 99 359
Stockholders' Equity 6,849 7,279
Treasury Stock (4,953) (4,219)
Net Stockholders' Equity 1,896 3,060
Total Liabilities and
Stockholders' Equity $ 10,396 $ 11,786
The data reported for December 31, 2000, are based on unaudited
statements, but include all adjustments that the Company considers
necessary for a fair presentation of results for these periods.
CONTACT: Gillette
Eric A. Kraus
Vice President, Corporate Communications
(617) 421-7194
or
Skip Loper
Vice President, Corporate Investor Relations
(617) 421-7968
URL: businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire. All rights reserved.
-0-
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD
RETAIL
SUPERMARKETS
EARNINGS
*** end of story *** |
